Lar España Real Estate SOCIMI (LRE) Q4 2023 earnings summary

Executive summary

• FY 2023 operating performance strengthened: like-for-like GRI rose 16.3%, like-for-like NOI rose 19.5%, occupancy reached 97.1% and adjusted net profit increased 91.6%.

• Declared sales reached €1,057.8 Mn, up 7.9% YoY; the proposed €66.2 Mn total dividend equals €0.79 per share, including ordinary and extraordinary distributions.

• Portfolio valuation was €1,313 Mn at year-end, down 2.4% YoY; net LTV remained 31.0%, with approximately €245 Mn of available cash.

Financial highlights

• Revenue was €91.4 Mn, up 14.0% YoY; total income increased 13.5% to €95.0 Mn.

• Reported profit for the period was €36.8 Mn; profit excluding investment-property fair-value changes was €77.2 Mn, up 91.6% YoY.

• GRI increased 13.5% and NOI 16.5% YoY; like-for-like growth was 16.3% for GRI and 19.5% for NOI, excluding divested retail parks.

• EPRA Earnings were €76.4 Mn (€0.91/share); ordinary EPRA Earnings were €56.0 Mn (€0.67/share).

Segment performance

• Declared sales grew 7.9% YoY to €1,057.8 Mn; food sales rose 8.7% and culture, tech and multimedia rose 10.1%.

• Dining sales increased 10.2% YoY, leisure and entertainment 10.4%, and health and beauty 14.9%.

• Fashion sales increased 5.9% YoY, home 8.4%, services 5.8%, and sports and adventure 0.3%.

• The portfolio comprised 71% shopping centres and 29% retail parks by GAV; 76.2 Mn visits were recorded in FY 2023.